Stimulus Package - Housing is Critical

With the debate over the Stimulus Package ongoing at Capital Hill, one thing is certain. Something needs to be done to stabilize the housing market. The Lehigh Valley isn't as bad as a lot of the other real estate markets in the country but we are seeing our fair share of foreclosures and short sales.

During the length of time that it takes to market, place under agreement, and close on a home sale many possible services are involved. 

To realize how important the housing market is to our overall economy let's look at what can typically be involved in every home sale with respect to jobs and job growth.

• Listing Agent and Broker
• Buying Agent and Broker
• Appraiser
• Mortgage Company
• Title Company
• Lawyer
• Property Inspection Company
• Municipal Inspections
• Home Maintainance Supplies (paint, carpeting, roofs, heating systems)
• Contractors (masonry, electrical, carpenter...etc)
• Newspaper Print Ads
• Internet Marketing
• Colored Brochures (ink and paper supply stores)
• 2% Transfer Tax (1% from buyer, 1% from seller) - spread throughout municipal, county, and state government's

This has a trickle down affect as the associated services cut-back to take into account the slow market. Layoff's start occuring which causes a further decrease in any associated services for any involved. The administrative assistant that gets laid off moves out of their rental and back in with their parents. They lose their health insurance so don't go to the doctor or refill that needed prescription. So, the medical industry starts cutting back.

 I think you get the point.

The Housing Market has the ability to pull the whole economy down. Add in those large gas prices we were seeing last spring and here we are.

In my opinion the Stimulus Package, currently being debated , does not correctly address the inherent problem. If this concerns you, please write or contact your senators and congress representatives to voice your concerns.